כיצד להימנע מהחזרים כספיים וביטולים בגין הזמנות סדנאות או סיורים?
Practical strategies for handling last-minute cancellations in the experience and workshop industry without issuing refunds.
Practical strategies for handling last-minute cancellations in the experience and workshop industry without issuing refunds.
This blog post will give you the tools and structure to avoid refunding while keeping your customer super, super happy.
If you are an experience or creative workshop manager, the next storyline will be super common to you:
John booked two tickets for himself and his wife to participate in your activity. John paid the full price you charged a couple of months in advance. A few days before the event, he finds out they can’t participate for whatever reason . John calls you and asks for a refund.
Topics that will be covered in this article:
As an activity owner, it’s a tough spot to be in. On one hand, you already planned for this customer, booked a spot for him, blocked your schedule, and got everything ready to have the best experience possible. This spot in the calendar won’t be resolved as it’s too close, and you might have some costs like staff and materials.
On the other hand, you want this unpleasant situation to be resolved as fast as possible, keeping John happy and losing the least amount of money on the way to resolution.
Here are some considerations you could have when deciding what to do:
As a small business owner, your reputation is often everything. Having an unhappy customer might lead to bad reviews, shaming online, and potentially way more financial damage than just refunding the money.
Engaging in negotiation about the refund amount might suck your time and will to live, and eventually, you will spend more time, be more exhausted, return the money, and have an unhappy customer.
It’s too close to the reservation date. You won’t be able to sell the spot to someone else. You are a small business and can’t afford customers canceling with short notice. At the end of the day, you need to feed your family, and this is your income we are talking about. You have already paid for materials and staff for hosting the experience.
After working with the best activities in the industry, I feel we’ve perfected the process that creates the best results both for them as activity owners and for John, the canceling customer!
First and foremost, good communication is key to minimizing last-minute cancellations. Regularly engaging with your customers keeps your activity top of mind and can significantly reduce no-shows. A couple of days before the event, send a friendly reminder.
"Hey John, we’re excited to see you and your wife at our pottery class this Saturday! Here’s a quick reminder of what to expect and what to bring."
By sending reminders 48 hours and 24 hours before the activity, you increase the chances that your customers will remember their booking and be prepared. This simple step can drastically reduce cancellations and ensure your customers are well-informed and excited about their upcoming experience.
Having a clear and fair cancellation policy is essential. Make sure your customers are aware of it at the time of booking and include it in confirmation emails and reminders.
If John calls to cancel a few days before the event, offer him the option to reschedule right away. Make it easy for him to pick a new date that suits his schedule.
“John, I completely understand. Life happens! We’d love for you and your wife to still experience our pottery class. How about we reschedule you for next month? We have slots available on the 10th and 17th. Which one works best for you?”
By being proactive and accommodating, you not only keep John’s business but also show that you value his participation. This approach demonstrates flexibility and customer care, which are crucial for maintaining a positive relationship.
If rescheduling doesn’t work for John, offer him a gift certificate instead of a refund. This way, he still feels valued and is likely to come back another time.
“John, if rescheduling doesn’t fit into your plans, we can provide you with a gift certificate for the same activity you scheduled. How does that sound?”
This not only retains the booking revenue but also encourages future business. Plus, it keeps John happy and gives him something to look forward to.
Personally, from talking to many customers, it seems the most favorable way both for business owners and for customers to resolve refund requests. With webook, this option comes out of the box! Each reservation has the option to convert to a voucher. Choosing this option will remove the reservation from the bookings and make the time available again. The customer will receive a voucher that will allow them to schedule their experience or activity based on the availability any time.
If John’s cancellation falls within the non-refundable window, offer a coupon for a discount on a future booking. This shows goodwill and keeps him as a potential future customer.
“John, our policy means we can’t offer a refund this close to the date, but we’d love to offer you a 25% off coupon for any future booking as a thank you for your understanding. We value your business and hope to see you soon.”
Navigating last-minute cancellations and refund requests can be tricky, but with the right approach, you can keep your customers happy and minimize financial loss. Clear communication, flexible rescheduling options, and thoughtful policies can turn a potentially negative situation into an opportunity to build stronger relationships with your customers.
Remember, keeping your customers super happy doesn't always mean giving a refund. Sometimes, it's about showing that you value them and are willing to work with them to find the best solution.
Do you want to see how Webook supports all those recommendations out of the box? Contact us
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